TUESDAY, JUNE 28, 2022
Flood damage to crops can be devastating and significantly impact your farm operation’s revenue. Severe events may create planting delays or complete losses to crops already in the ground. When this occurs, crop insurance may provide financial assistance to help you overcome these circumstances.
The knowledgeable professionals at Mark Bruns Agency can help you with your crop insurance needs. Contact us today for more information.
Does Crop Insurance Cover Flooding?
The coverage that crop insurance provides depends on the policy. For example, multiple peril crop insurance (MPCI) typically covers production losses due to flooding, while crop-hail insurance does not. If you have MPCI, it may provide payments for flood damage to your crops at the level specified in your policy. Additionally, the type of MPCI policy you select may impact the amount you receive. 
Multiple Peril Crop Insurance (MPCI)
MPCI is a federally subsidized program that has specific deadlines. It may incentivize replanting or assess penalties for not doing so. In addition to flood coverage, MPCI may cover losses due to other natural hazards (e.g., destructive weather events, drought, frost, insect damage and disease). It may also provide financial protection against low market prices.
Although MPCI may provide coverage for production losses, it typically does not cover storage losses. Make sure to work closely with your insurance agent when securing an MPCI policy. We can provide more information on limits and exclusions and help you obtain the right insurance for you.
Crop-Hail Insurance
Another type of crop insurance is known as crop-hail insurance. Private insurers sell this product and it is not federally subsidized. It generally may be purchased on an acre-by-acre basis as a supplement to MPCI. It may provide coverage for damage caused by hail or other perils (e.g., fire), but it typically does not cover losses due to flooding.
How Much Is Crop Insurance?
The cost of crop insurance depends on several factors. The crops you are insuring, your production history, the type of policy you select and your geographic area may impact premiums. Your agent can provide more information on costs and how the federal subsidy impacts the price of MPCI. Reach out to us for more details.
How Do I Get Crop Insurance?
The team at Mark Bruns Agency can help you secure crop insurance that provides the necessary protections for your farm operation. We are a locally owned and operated insurance agency that serves clients in and near Erie and Girard, Pennsylvania. We can discuss options, pricing and crop insurance coverages and assist with your other insurance needs. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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